Japan’s Idemitsu to cut oil refining capacity by 16%

Japan’s Idemitsu Kosan Co. said that it plans to lower its daily oil refining capacity by roughly 16%, or around 100,000 barrels, by Fiscal 2013, in response to declining demand. The company’s current capacity is 640,000 barrels per day. The move is part of the major oil wholesaler’s medium-term business plan. By restructuring its sluggish domestic oil business and channeling more resources into growth areas, the company aims to boost its group operating profit to 120 billion yen (US$1.28 billion) by Fiscal 2012, up 160% from estimates for Fiscal 2009, which ended last month. (April 23, 2010)